TCF compliance requires organisations to demonstrate and be responsible for ensuring customers are treated fairly.
Hopefully many of the principles embodied within the outcomes are already part of the culture of your business. However, the ability to demonstrate these outcomes may not yet be in place. Some changes in your business processes may be required, or new processes added. TCF at its core requires demonstrating customers can be confident of fair treatment.
Read also: What is Treating Customers Fairly (TCF)?
Making TCF compliance principles central to your business not only ensures that you comply with the upcoming Twin Peaks legislation, but also helps retain clients and increases the likelihood that you will receive fewer complaints. Customers that are confident they are being treated fairly are more likely to remain loyal and in turn promote your business.
Key value chain areas that may require attention:
- Products designed to target specific consumer groups
- Transparent communication in financial marketing practices
- Clear communication throughout the sales process
- Updated information and customer support after the point of sale
- Complaint handling
Potential gaps in the key TCF compliance chain:
- Staff awareness and training on the principles and application of TCF
- Sales and marketing material
- Product knowledge and communication
- Suitable advice and sales process communication
- The flow of relevant information to the client (before, during and after the sale)
- Complaint handling
- Customer feedback
- Transparency in remuneration and incentives
- Risk assessment relating to TCF non-compliance
- Record keeping and Management Information (MI)
What TCF compliance is not about:
- Creating satisfied customers. Just because a customer is satisfied does not necessarily mean they are being treated fairly! A satisfied customer could be treated unfairly and not know it.
- Identical levels of service. The FSB recognises that organisations have different resources and ways of doing things. The essential element it demonstrating fair treatment.
- Being told which products to sell. Products should be designed to meet the needs of identified consumer groups and are targeted accordingly.
- Customers avoiding responsibility. Customers are still expected to participate in decisions and take responsibility for them
TCF compliance is about creating a culture of doing business in a way that will help ensure customers get fair treatment.
If you want a human solution – supported by software – designed to deliver relevant and actionable Management Information (MI) to increase compliance and embed Treating Customers Fairly (TCF) into your culture
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